BHBFC sets higher loan disbursement target

The Bangladesh House Building Finance Corporation (BHBFC) has set the loan disbursement target at Tk 6.0 billion for fiscal year 2018-19.

The state-run corporation set the target at its executive board meeting last week, a top official of BHBFC told the FE.

The disbursement target is Tk 2.0 billion higher than that of the previous fiscal year, he added.

The amount of loan disbursement has been increased for this fiscal in view of the growing demand for loans in the housing sector, officials observed.

The volume of loans would rise further in the current fiscal year as they would also sanction housing loans for government employees from the government-allocated funds, they said.

In this fiscal year, BHBFC will also get 31.23 million euros from the Islamic Development Bank (IDB) through the government for providing loans to middle- and lower-income groups under the Rural and Peri-urban Housing Finance project.

The BHBFC will soon sign a Subsidiary Loan Agreement (SLA) with the government to receive a total of 94.75 million euros from the IDB in three phases for 2018-19, 2019-20 and 2020-21 fiscal years.

"The volume of loans to be disbursed in the current fiscal year may double if we get the proposed funds from the government and the IDB," BHBFC Managing Director Debasish Chakrabarty told the FE.

The corporation has set the higher disbursement target for this fiscal year considering the growing demand from the borrowers in the housing sector, he added.

It set a loan disbursement target of Tk 4.0 billion for fiscal year 2017-18, but sanctioned Tk 4.1 billion, according to the BHBFC data.

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